Mortgage Question - Confused?!

[rjroyse]

Hi. We are in chapter 7. We are keeping the house - we are so far under water and have been able to make payments on it.

Question is - I noticed that we had not recieved a statement yet for November. We have been paying a week or two before it is due.

So I went on line to try and log in and pay that way. Access was denied.

So I called this morning. I was told by the mortgage comanyies BK department, that becuase we are in Chpater 7, there are no bills sent out, we dont have access on line. That the only way to pay is by caling in and making a payment over the phone, or to just send in a check.

I then asked when the statements and biling will be turned back on. She stated that this is only after we hare re-affirmed the loan through the courts.

I have heard and know that you never re-affirm the loan. So how does this all work? How does that work and so that we can show we are making payments to the mortgage co, timely payments and that we are doing the right thing?

I am very confused at this point.

[despritfreya]

My suggestions to clients. . .

Send certified letter, return receipt requested, asking that billing statements be sent on a normal basis. The sending of such statements is not a violation of anything once the discharge is entered pursuant to 11 USC 524(j). Tell the lender that the sending of such statements will not be deemed a violation of your bk rights before or after the entry of the discharge.

If you have an attny, he/she can send this type of "comfort letter".

It may or may not work. You just need to make sure you make your payments and verify the correct amount to be paid if your payment includes impounds for taxes and/or insurance or has an adjustable interest rate. There is no need to reaffirm for this type of info.

Des.

[rjroyse]

thank you

So am I to assume that as long as we have the house, this is the process that we have to take every month, even after the discharge?

[jst4f]

Our normal billing started back up a couple of months after discharge and we did pay and stay....without re-affirming the mortgage.

[IBroke]

We didn't reaffirm the mortgage and after filing, every statement has a clause, stating that they would honor the BK and that the statement should not be considered an attempt to collect. Online access is also unaffected. I'm really happy they did it this way. It's much easier to keep track of the mortgage and payments.

[btbeme]

Once you have your discharge and the file is closed (may or may not happen on the same date), you can certainly call your mortgage company. When you talk to them, inform them that your case has been both discharged and closed. They will then either investigate that for themselves, or ask you to send them documentation that shows the discharge and the close.

Once they are satisfied that your are discharged and closed, which may take a few days to a couple of weeks, you can request (and they will start) to send you statements again. Those statements will have a large paragraph of legalese which will claim that the statement is "for information only" and not a demand or a request that you pay. Of course, if you intend to stay, you must pay.

In the meantime, send your payments on-time - I suggest with time to spare - to the payment address that their bankruptcy department gives to you. I also suggest that you keep hard copies of the check (or bank transfer, etc) showing the payment and date. Never hurts to have proof in case something gets lost, missed, mishandled, or anything else you can be blamed for.

Per Des above - if a monthly statement is important to you in the meantime, you can indeed contact their BK department and ask them what they would need to continue your monthly notification.

[AngelinaCat]

Folks, I believe that the OP is in a BK that is currently active...